Real estate becoming the new wealth-building avenue? Moneydhan founder shares emerging investment trend
In a detailed LinkedIn post, Sujith highlighted how India's emerging affluent are increasingly turning to early-stage property investments to outperform traditional assets. 'While
mutual fund investors
cheer a 12% CAGR over a decade, someone like Riya is silently clocking 18โ22% IRR by compounding in hard assets,' he wrote, sharing insights from a real client case study.
Check full post here
While mutual fund investors celebrate 12% CAGR over 10 yearsโฆ
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Undo
Riya quietly crosses 18โ22% IRR by
compounding hard assets
.
This is how India's new-age rich play the long game. Read more
๐ง๐ต๐ฒ ๐๐ฎ๐บ๐ฒ ๐๐ฒ๐ด๐ถ๐ป๐, ๐ฌ๐ฒ๐ฎ๐ฟ ๐ฌ
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A new branded project launches in Gurgaon.
On paper, it's 36 months to possession.
On the ground, it's just a hoarding and a sales office.
But someone, let's call her Riya, books two units. Not one.
Why? โขโขโขโข
She's buying early due to ๐ฝ๐ฟ๐ถ๐ฐ๐ฒ ๐ฒ๐ป๐๐ฟ๐ ๐ฑ๐ถ๐๐ฐ๐ผ๐๐ป๐.
At launch, the flat costs โน1.2 crore.
Similar "ready to move" flats nearby, are going for โน1.5 crore.
That's a 20% discount, right from Day 1.
Riya books it with a staggered payment plan:
๐น10 % now
๐น30% 1st milestone
๐น30% 2nd milestone
๐น30% final payment.
No EMI yet. No loan disbursement. Just early commitment.
๐ฌ๐ฒ๐ฎ๐ฟ ๐ฎ ,๐ง๐ต๐ฒ ๐๐๐ถ๐น๐ฑ๐จ๐ฝ
The tower is halfway up.
The price has inched to โน1.4 crore.
Demand is growing. NRIs and HNIs enquire with the builder.
Rental brokers want to know, when handover will happen.
Riya watches quietly.
๐ฌ๐ฒ๐ฎ๐ฟ ๐ฏ - ๐๐ผ๐ผ๐ธ ๐ฝ๐ฟ๐ผ๐ณ๐ถ๐๐ ๐ผ๐ฟ ๐๐ผ๐น๐ฑ?
Possession nears. The builder starts giving keys.
The market value of her flat is now โน1.75 crore!!
She has two options
๐ธSell the unit and book a clean โน50 lakh gain after all payments.
๐ธRent it out, earn 6% yield, and refinance against it at cheap rates.
Guess what, She does both.
Sells one, rents the other. ( she has 2 units remember)
Money that came after selling is invested into a pre-leased commercial unit near NH8. That commercial unit starts giving her 8% annual returns from Day 1.
---------
This isn't random investing.This is a structured wealth play.
Over 7โ10 years, Riya repeats this process 3โ4 times.
Each time
โโข Buys early, before the crowd.
โโข Waits for value to unlock.
โโข Exits smartly or converts to rental income.
โโข Moves profits into high-yield commercial assets.
This was the real story for a client we have. He needs us to diversify now into equities and other liquid assets. And before you jump the gun, Read more...
๐ง ๐ง๐ต๐ฒ ๐๐ถ๐๐ ๐ผ๐ณ ๐๐๐๐๐บ๐ฝ๐๐ถ๐ผ๐ป๐ ๐ฌ๐ผ๐'๐ฟ๐ฒ ๐๐ฒ๐๐๐ถ๐ป๐ด ๐ข๐ป
๐. ๐ง๐ถ๐บ๐ฒ๐น๐ ๐ฑ๐ฒ๐น๐ถ๐๐ฒ๐ฟ๐
If the builder delays, your plan collapses.
๐. ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐ ๐ฎ๐ฝ๐ฝ๐ฟ๐ฒ๐ฐ๐ถ๐ฎ๐๐ถ๐ผ๐ป
You're counting on 20โ30% growth by possession.
๐. ๐ก๐ผ ๐น๐ฒ๐ด๐ฎ๐น ๐ฑ๐ถ๐๐ฝ๐๐๐ฒ๐
RERA is not as fast or effective as promised.
๐. ๐๐ป๐ฑ-๐ฏ๐๐๐ฒ๐ฟ ๐ฑ๐ฒ๐บ๐ฎ๐ป๐ฑ
You need someone willing to pay premium for ready units.
๐. ๐๐ผ๐บ๐บ๐ฒ๐ฟ๐ฐ๐ถ๐ฎ๐น ๐ฎ๐๐๐ฒ๐ ๐พ๐๐ฎ๐น๐ถ๐๐
The shift from residance to pre-leased needs due diligence.
๐ฆ ๐๐ถ๐ฑ๐ฑ๐ฒ๐ป ๐๐ฟ๐ถ๐ฐ๐๐ถ๐ผ๐ป๐ ๐ฌ๐ผ๐'๐น๐น ๐๐ฎ๐ฐ๐ฒ:
๐น Bank Loans
You start paying EMIs once disbursement begins, even if the flat is incomplete.
๐น Registration & Stamp Duty
6โ7% of property value reduces net gain.
๐น Capital Gains Tax
20% with indexation if held over 2 years.
๐น Rental Vacancies
1โ2 months empty can shave off your yield.
How people reacted?
"Intensive capital is the key to invest into a real estate, atleast 10-15 lakhs," said one user.
"As far as I know , some smart players made huge money in the booming Mumbai market , while May lost their shirts and pants in this game , since 2000s. So it is not something new . This was aided by the game of the builder financing your emi ( many ended up paying only emi and possession was a distant dream). There was a tacit support from banks also when disbursements were made not strictly on the basis of the progress of the project , aiding the unscrupulous promoters to divert the money instead of completing the project. My expectation from a responsible advisor like you is that such products are not recommended even with warning. People tend to ignore the warning or may not even understand the same," added another user.
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